All Forum Posts by: Tiffany Murokozi

I believe other commentators provided some articulate info regarding the situation. The only thing I will tell you is this: buyers' market or seller's market, the house will be sold at the price people are willing to pay for it.

From a RE agent perspective, I can tell you that people who go around touting it's a buyer's market and you won't be able to make money are nonsensical. It's a buyer's market in the sense that there are more options available. Yes, financing is expensive, but that is why we have a god given tool called refinancing. In my opinion, you should be really worried about a 7.5% interest rate when you pay millions in interest from your primary residence or portfolio.

Let's say your property sells at your projected $279,000 with a 20% downpayment at 7.5% interest 30-year ARM with no HOA fees and PMI. The buyer's monthly payment is approximately $1,933. Run the same scenario at 6% interest their payment is approximately $1,710. If the buyer loves the finishes you put on the property, the location, and they are planning to make it their primary residence to support or raise their family. Do you think they are going to be stuck on paying $200 more because they bought it in January 2023?

I suggest you read ''the book on flipping houses'' by Jeremy Scott, a BP author, and respected house flipper. This will help fill in some gaps. It gave me a lot of insight into house flipping mechanics.

I used Hard Money for everything except for the materials. The first one I used HML on, I got more out of it than I put into it so it will be pretty much a perfect BRRRR, the second one is still being completed so I'm not sure if I will have to keep any of my money in it or not.

For me, it was actionable knowledge. I read all of the books but still without actually performing the process I really didnt know what to do / how it all works. I finally got a decent deal and had to use Hard Money - after that It opened my world up to endless possibilities, then I backed myself into a corner and had to use Private money and that opened up a whole new, better world lol. It's all about taking action and forcing yourself to learn hands on - for me at least. 

It is difficult to find a good deal and the second issue is high interest rates. Also, finding financing and having the required downpayment is always a challenge for rookies.

1.  Lack of funds for a down payment: A traditional mortgage for an investment property typically requires a larger down payment than a mortgage for a primary residence.
2.  Difficulty qualifying for a mortgage: Lenders often have stricter requirements for approving mortgages on investment properties, and the property itself may need to meet certain criteria.
3.  Lack of experience: First-time investors may be uncertain about how to find and evaluate potential properties, how to manage tenants and property, and how to handle the financial aspects of owning an investment property.
4.  Limited access to credit: The credit score, income and debt to income ratio might not meet the bank's requirements, limiting their ability to get a loan.
5. Risk aversion: Being nervous about the potential risks and responsibilities of owning an investment property can make it difficult to take the first step.
6.  Finding the right property in a good location with positive cash flow is not easy.

When doing a flip, always keep in mind the 70% rule. Some investors may tweak the 70% rule a little bit but for the most part, this is the best way to analyze a deal quickly so you know whether to move on or dive deeper into the deal analysis for that property.

@Tiffany Murokozi are there any potential future legal liability issues for your existing LLC?

If you put your property in it and your LLC is sued for something related to your other business ventures tied to that LLC, you could lose the property you put in the LLC.